The Bank of England has proposed limiting individual holdings of stablecoins to £20,000 per coin. Businesses would face a much higher ceiling of £10 million under the plan. The limits would apply to each stablecoin an entity holds, not to total exposure across different coins.
What the proposal covers
The caps target stablecoins specifically — digital tokens meant to hold a fixed value against traditional currencies. Under the proposal, a single person could own no more than £20,000 worth of any one stablecoin. A business could hold up to £10 million per coin before triggering restrictions.
The Bank of England put forward the limits as part of a broader effort to regulate crypto assets. It did not specify a timeline for when the rules would take effect or whether they apply to existing holdings.
How the thresholds compare
The individual cap of £20,000 is roughly in line with deposit insurance limits in the UK. The business ceiling of £10 million is significantly higher, reflecting the different risk profiles the central bank sees for corporate and consumer exposure.
Stablecoin issuers and exchanges would need to enforce the limits. Users who exceed the cap would likely be prevented from acquiring more of the coin until their balance falls below the threshold.
Unanswered questions
The proposal leaves several details open. It is not clear whether the £20,000 limit applies per person across all platforms or per wallet address. The Bank of England also did not explain how it would treat stablecoins issued outside the UK.
A consultation period may follow, but the central bank has not announced one yet. No date has been set for finalizing the rules.
